9th April 2010, 7:53 AM
I don't know why it took me so long to finally realize this, but supply and demand can't even explain the effect of marketting, and hardly describes the average transaction people make.
Heck, supply and demand can't even explain some tourist visiting China buying an overpriced marble table for their parents, fully aware it's overpriced. What I want is an economic model that can actually INFORM that person on their decision and accurately describe that purchase in detail, and maybe even help them to avoid that situation in the future.
Economics just has engineering envy, WISHING it could be done in such specific detail.
Maybe if everyone everywhere had perfect information on all things that could possibly be sold at all times in all situations, THEN "supply and demand" would be an accurate explanation. As it stands, it's just a fuzzy concept thrown out to explain things in a rough way that is just "fitted onto" ANY situation to explain it post-sale, the sort of Nostradamus/Astrology prediction "reasoning" we see for a lot of stuff. Heck if it can't even explain why people buy quack medicine...
Well, rant over.
Heck, supply and demand can't even explain some tourist visiting China buying an overpriced marble table for their parents, fully aware it's overpriced. What I want is an economic model that can actually INFORM that person on their decision and accurately describe that purchase in detail, and maybe even help them to avoid that situation in the future.
Economics just has engineering envy, WISHING it could be done in such specific detail.
Maybe if everyone everywhere had perfect information on all things that could possibly be sold at all times in all situations, THEN "supply and demand" would be an accurate explanation. As it stands, it's just a fuzzy concept thrown out to explain things in a rough way that is just "fitted onto" ANY situation to explain it post-sale, the sort of Nostradamus/Astrology prediction "reasoning" we see for a lot of stuff. Heck if it can't even explain why people buy quack medicine...
Well, rant over.